With a team of designated architects and seasoned construction professionals, AEI provides a cost-effective, out-sourced solution for construction, mezzanine and permanent lenders when undertaking the complex task of construction lending. Our teams of professionals understand the complexities, difficulties, and risks associated with the construction phases of real estate development/renovation. Each construction project is unique. As such, our services are customized for each project and each client’s position with respect to the project. Our services can be engaged at any point in the construction process. However, we are typically engaged during the underwriting of the construction loan, or the Pre-Construction Phase. Our typical service package consists of the following:
Pre-construction Phase
- Preparation of a Construction Risk Assessment Report
- Review of contract agreements for design and construction
- Assessment of direct cost budget(Schedule of Values)
- Review of drawings and specifications
- Review of contingency budget
- Review of site due-diligence reports/studies
- Review of regulatory and entitlement documents
- Review of construction and disbursement schedules
- Opining on bonding or Sub-guard insurance requirements
- Opining on experience of designer
- Opining on experience of contractor(s)
Construction Phase
- Preparation of Project Status Reports
- Review of contractor’s payment requisition
- Review of lien waivers
- Photographic documentation of progress
- Tracking percentage of work-in-place and funds available to complete the project
- Review of change orders
- Review of retention withheld
- Tracking of construction and disbursement schedules
- Monitor general compliance with the contract documents
- Review of testing reports
- Review of permits/approvals issued by regulatory agencies.
- Review of close-in inspections and safety records
- Review of schedule and identification of schedule conflicts
Close-out Phase
- Designers’ Certificates-of-Compliance
- Final payment waivers
- Contractors’ Certificates-of-Completion
- Temporary and permanent Certificates of Occupancy
During the Close-Out Phase, which is probably the most cumbersome process of the entire construction process, AEI will ensure that the completed project substantially conforms to the construction documents. We will conduct a final physical site visit to process the final pay application. We will review the contractor’s punch list and supplements as needed. We will identify non-conforming work based upon visual assessments. We will review the final change orders, if required. We will review the certificates of substantial completion, which are provided by both the Contractor and the Designer of Record. We will review the Temporary or Permanent Certificate of Occupancy.
